Industrias Bachoco posts marginal Q2 growth
One of the world’s largest poultry producers, Industrias Bachoco, has reported steady results for the second quarter 2014.
The Mexico-based Company's 2Q14 net sales totaled $10,608.8 million, $62.2 million or 0.6% more than $10,546.6 million reported in 2Q13. The increase being a result of more volume sold and solid chicken and swine prices during most of the quarter; this was partially offset with lower sales in eggs and balanced feed products caused by lower prices when compared to 2Q13.
In 2Q14, sales of US operations represented 20.2% of the total sales; this compares with 19.3% in 2Q13.
"The second quarter was in line with the seasonal behavior of the Mexican poultry industry, as it normally is a strong quarter," said Rodolfo Ramos Arvizu, chief executive officer of Bachoco.
"On one hand, we observed a balanced supply and demand in our main product lines in both our Mexican and US markets, and on the other hand, following worldwide trends, we observed a reduction in the cost of our major raw material; this reduction, mainly in corn, benefited our production cost.
"These factors allowed us to increase our total sales, to post strong quarter results with double digits in all of our margins and, to practically reach the same operating results in the first half of 2014 as compared with the extraordinary results of the first half of 2013, which represented a tough comparison.
"The Company's negative net debt totaled $7,171 million, which positions us as a financially solid Company."
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